09/07/201 1 _10 : 2 3 .. . 907571280 B FA A PAG E 01/0 7 

### FEDERA LAVIATIO NADMINISTRATIO N

Alaska n Regio n Offic e o f th e Regiona l Counse l 22 2 Wes t Sevent hAvenue , Bo x 1 4 Anchorage , Alask a9951 3 PH : (907 ) 271-526 9 FAX : (907 ) 271-280 0 

# FACSIMIL ETRANSMISSIO NCOVE RSHEE T TO : Judg e Richar dC Goodwi n Docke t Cler k FROM : Crai g Wm . Black , Esq .

FA X No : (202)366-753 6 (202) 493-5020 RE : Smit hCabl e Systems , Inc . FA A Docket No . CP09AL001 2 DMS No . rAA-2009-097 6

Numbe r o f page s (no t

includin g thi s cover

sheet) : - 6 - Administrator ^ Oppositio n T o Smit hCable' s Applicatio n Fo r Attorney' s Fee s An dExpense s

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### OERARTMENTO F ;:;AN3PQnTAT10 M UNITE D STATE S DEPARTMEN T O FTRAN S POR T AT1GIS: T [JPERATIONS

OFFIC EO FHEARING S WASHINGTON . D.C . 7rii ! ^[ P1 2 A lO M I NTH EMATTE RO F SMIT H CABL ESYSTEMS , INC . FA A DOCKE T NO . CP09AL001 2 (Civi l Penalt y Action ) DM S NO . FAA-2009-097 6 AD\nisnSTRATOR^ S OPPOSITIO N T O SMIT H CABLET S APPLICATIO N FO R ATTORNEYV S FEE S AN D EXPENSE S Complainan t

Federa l Aviatio n Administratio n ("Administrator") , throug hcounsel , hereb y oppose s th e Applicatio n fo r th e Awar do f

Attorney s Fee s an dExpense s Unde r th e Equa l Acces s t o Justic e Ac t

o f 19S 0 ("Application" ) file db y responden t Smit hCabl e System . Inc . ("Smit hCable") , Th e applicatio n shoul db e denied . Smit hCabl e ha s applie dfo r attorney s fee s an de;tpense s unde r th e Equa l Acces s t o Justic e Ac t

("EAJA"). ' A s Smit hCabl e accuratel y relates^ , partie s wh o succee di n certai n proceeding s befor e ih e Nationa l Transportatio n Safet y Boar d("NTSB" ) ma y recove r certai n attorney s fee s an dexpense s vi aEAJ A an dit s implementin g regulations.' ^ However , wha t

Smit hCabl e apparentl y faiJ s t o appreciat e i s tha t thi s proceedin g di dno t tak e plac e befor e th e NTSB . Th e NTS B i s a n independen t federa l agency ^ responsibl e for civi l

' 5 . U.S.C . § 504 ; Applicatio n ai4 .

' 14C.F.R . Par t

14 . • * 4 9 U.S.C . 5 lUl(a) .09/07/201 1 10:2 3 9072J71280 B FA APAG E 03/3 7

transponatio nacciden t

investigation. ^ This , o f course , i s no t

atransportatio n occide mcas e an d wa s no t hear db y th e NTSB

- Rail^er , i t i s ahazardou s material s cas e coticernin g acivi l penalt y propose db y th e Administrato r o f th e Federa l Aviatio n Administratio n imde r 1 4 C-F.K . 13 . IC^

. U wa s conducte dunde r

di e Rule s o f

practic e i n FA A Civi l Penall y Actions ^ an dhear db y an Administrativ e U w Judg e ("AU" ) withi n th e Departmen t o f Transportation' s Offic e o f Hearings. ' Althoug hSmit hCable' s Applicatio n an dnumerou s prio r filing s al l bea r

acaptio n appropriat e for

aNTS B matter , thi s i s no t aNTS B case . Whil e EAJ A cost s an dfee s ar e certainl y permitte di n matter s hear db y th e NTS B , they

ar e no t allowe di n hazardou s matena hcase s hear di n thi s Departmen t o f Transportatio n forum . T nDominio n ConceDts ^ th e Administrato r hel dtha t

whe n th e Administrato r bring s ahazardou s material s cas e agains t

ashippe r

unde r 4 9 U.S. C § § 5101-512 8 an dbase dth e propose dpenalt y o n4 9 U.S.C . § 512 3 alone , th e hearin g i s no t a n adversar y adjudicatio n decide dafte r ahearin g o n th e recor dsubjec t

t o sectio n 55 4 o f

th e Administrativ e Procedure s Ac t for whic hEAJ A cost s an dfee s ma y b e awarded . A s bluntl y expresse db y th e Administrator . ''[t]h e EA.J A doe s no t appl y t o hazardou s material s cases."' ^ tn th e fac e o f Dominio n Concepts , wha t Smit h Cabl e request s i s imprecedented : undersigne dcounse l ha s searche dit s databas e o f hazardou s material s case s hear db y th e Offic e o f Hearing s an dcanno t

fin dasingl e on e wher e cost s o r ^4 9 U.S.C . § 1131 . " 14C.F.R . § USubpanG . ^ 5 U.S.C . §3105 . ^ Applicatlonjo f

Empir e Airway s fo r

Fee s an dExpense s Unde r th e Equa l Acces s t o Justic e Act . FA A Docke t

No . CP10EAOOO8 , 201 0 W L506608 0 (Dec . 9 , 2010) . ^ FA A Orde r

No . 2005- 4 (Mar . 8 . 2005 )

" ^ 5 U.S.C . §554 . ' ' Dominio n Concept s a r * 3 (emphasi. s added) . SmithCabl e Systems , hic , DM S No . FAA-2009-097 6 Administrator\ \Oppositio nt o Smit hCable' s Fag a2 Applicatio nfo r

Attorney*." : Fee s an dExpense s09/07/201 1 10:2 3 907271280 0 FA A PAG E 04/0 7

attorney s fee s wer e grante dt o aprevailin g respondent , tinde r EAJ A o r

otherwise . EAJ A cost s an dfee s ar e simpl y no t

availabl e i

n circumstance s suc ha s these . Moreover , eve n i

f EAJ A di dapply , it

woul dno t

requir e a n awar do f

cost s an dfee s inthi s cas e becaus e th e Administrator' s prosecutio n o f thi s cas e wa s substantiall y justified . EAJ A require s anagenc y conductin g a n "adversar y adjudication" * t o awar dfee s an dothe r expense s t o a prevailin g part y unles s th e positio n o f th e Admini.strato r

wa s "subsianliall y justified " o r specia l circumstancej i mak e a nawar dunjust.' ^ Th e Administrato r bear s th e burde n of

demonstratin g tha t th e cas e wa s substantiall y justified.' " Althoug hSmit hCabl e prevaile dwhen , followin g th e hearing , th e A U dismisse dth e Administrator' s complaint , an dalthoug hn o specia l circumstance s woul dmak e an awar do f cost s an dfee s t o Smit hCabl e unjust , suc ha n awar dcoul dno t b e mad e i n thi s matte r

becaus e th e Administrator' s positio nwa s substantiall y justified . A nactio n i s substantiall y justifie dwhe n i t ha s areasonabl e basi s for proceeding . It mus t b e justifie dt o adegre e tha t woul dsatisf

y areasonabl e person . Th e standar di s me t

i f ther e i s a"genuin e dispute, " o r i f reasonabl e peopl e coiU ddiffe r a s t o th e appropriatenes s o f th e conteste daction . Th e determinatio n o f

"substantia l justification " encompasse s arevie w o f th e entir e proceeding . It

i s decide d"o n th e basi s o f di e administrativ e record , a s a whole , whic hi s mad e i n th e adversar y adjudicatio n ... " "Substantia l justification " comiote s a n active , searchin g inquir y int o th e qualit y o f evidenc e advance dan d th e overal l reasonablenes s o f th e agency' s position . Failur e t o prevai l doe s no t rais e apresumptio n o f lac k o f substantia l Justification . U mus t

no t b e assume dtha t

th e government' s positio n wa s no t substantiall y justifie dsimpl y becaus e i t los t o n th e merits . No r

mus t th e agenc y demonstrat e tha t i t ha dasubstantia l likelihoo do f prevailin g t o prov e tha t it s litigatio n positio nwa s substantiall y Justified."' *

'^ 5 U.S.C . § 504(a)(1) . '" * 14C.F.R . § 1.4.04(a) . 1 4 Applicatio n o f

Recurren t

Trainin g Center , Inc. . FA A Docke t No . CPIOGLOOIO , 20J 1 W L 3028 0 at *l- 2 (Jan . 3 , 2011 ) (citation s omitted ) (emphasi s added) . Smit hCakljL^ystems , Tnc . DM S No . FAA-2009-097 6 Administrator' s Oppositio n t o Smit hCable' s Pav e 3 Appliccitior

j fo r Attorney' s Fee s an dExpense sPiq/PI7/2P1 1 1 in:?: ^ qpl79712flpI R FA A PAG F P1R/P1 7

Inthi s matter , th e FAA' s positio n wa s -substamiall y justified " withi n th e meanin g o f th e di.scu.ssio nabove . Th e A U ultimatel y dismisse dth e complain t because , followin g hearing , th e A U foun dtha t

th e Administrato r

faile dt o sho w b y apreponderanc e o f th e evidenc e tha t

Smit h Cabl e shippe dth e hazardou s material s a s alleged.' ' Althoug hth e A U foun dtha t Smit hCabl e offere dashtpme mt o Alask aAirline s an dtha t Alask aAirline s ram p agent s tha t da y foun d hazardou s material s withi n ashipmen t connecte db y document s t o Smit hCable , th e A U ultimatel y foun dth e evidenc e insufficien t t o conclud e tha t

Smit hCabl e actuall y offere dth e hazardou s material s tha t th e agent s discovered.' ^ Thi s i s no t acas e wher e th e A U determine d tha t th e responden t

di dno t shi p anything , o r

tha t th e material s i n questio n wer e no t hazardou s an dsubjec t

t o regulation . Rather , th e A U weighe dth e evidenc e an dth e testimon y an d determine dthat , o nbalance , th e Administrato r faile dt o carr y th e burde n o f proof . In fact , befor e addressin g die-problem s wit hth e Administrator' s position , th e A U wrot e i t wa s "understandabl e that , base dat

leas t i n par t o n thos e materials . Complainan t woul dope n an dprocee dwit ha n enforcemen t

action.'*' ' Furthermore , whil e Smit hCable' s applicatio n suggest s tha t th e Administrato r

alway s lacke dsufficien t ground s t o procee dwit hthi s case , i t shoul db e note dtha t Smit hCabl e chos e no t

t o mitigat e it s cost s an dfee s b y movin g t o dismis s befor e th e hearing . Th e Administrator' s po.sition , whil e ultimatel y unsuccessful , wa s substantiall y justified . Finally . Smit hCabl e ha s aske dtha t it s attorney s fee s b e calculate dat arat e o f $20 0 pe r hour . However , attorney' s fee s awarde dunde r EAJ A canno t

excee dS12 5 pe r

hour . Therefore ,

' • Initia l Decisio n at

6 . '*Jdal6-8 . 1 7 I dat 6 . Smit hCabl e Systems . Inc . Admimstrator' s Oppositio n t o Smit hCable' s Applicatio nfo r

Attorney' s Fee s an dExpense s DMSN n FAA-2009-097 6 Pag e 409/87/201 1 10:2 3 987271288 0 FA A PAG E 06/0 7

eve ni f fee s wer e availabl e i n thi s ha^.ardou s material s case , the y woul dhav e t o b e cu t substantiall y fro mdi e amoim t Smit hCabl e requests .

. Fo r th e foregoin g reasons , th e A U shoul dden y Smit hCable' s application . DATE D iJii s y da y o f September . 2011 .

HOWAR D L

- MARTIN , JR . Regiona l Coun?;e l

Wm , Bla a Attorne y CERTIFICAT EO FSERVIC E Re ; Smit hCabl e Systems , Inc . FA A Docke t

No . CP09AL001 2 DM S No . FAA-2009-097 6 I HEREB Y CERTIF Y tha t o n thi s dat e I hav e serve dacop y o f th e foregoin g b y postage-prepaid , certifie dmail , retur n receip t requested , facsimile , an demai l to : Th e Honorabl e Richar dC Goodwi n Administrativ e La w Judg e Offic e o f Hearings . M-2 0 U.S . Departmen t

o f Transportatio n 120 0 Ne w Jerse y Avenue , S.E . Eas t Buildin g Groun dFloor , Roo mEl2-32 0 Washington , D C 2059 0 -Fax:(202)366-753 6 Email : Richard.Goodwin@dot.go v I HEREB Y FURTHE RCERTIF Y tha t o n thi s dat e I hav e serve dth e origina l an dtw o copie s o f th e foregoin g b y pos t

age-pr e p aid, certifie dmail , retur n receip t requeste dan dfacsimil e to : Federa l Aviatio n Administratio n ATTN : Docke t

Clerk , AGC-43 0 Wilbu r Wrigh i Buildin g - Suit e 2W10O 0 80 0 Independenc e Avenue , S W Washington . D C 2059 1 Smith . Ccihl e Systems , fnc . DM S No , FAA-2009'097 6 Administrator' s Oppositio n t o SmithCable' s pa^ e 5 Applicatio n fo r

Attorney' s Fee s an dExpense s09/07/201 1 18:2 3 907271280 0 PA A ^^ ^ PAG E07/0 7

FAX : (202 ) 493-502 0 r HEREB Y FURTHE RCERTIF Y tha t o n thi s dat e TtTav5Tervcd-cupi£: s o f th e foregoin g b y postage-prepai dfust-clas s mai l to : Bren t R . Col e Marsto n& Cole , P. C 82 1 NStreet . Suit e 20 8 Anchorage . A K

9950 1 Fax : (907 ) 277-800 2 

## DATED : ^^ . ^ SO1 1

Federa l Aviatio n Administratio n Offic e o f Regiona l Counse l 22 2 Wes t 7l hAvenue , Bo x 14 , AAL- 7 Anchorage , A K

99513-758 7

Smit hCable , S\^tems , fnc . QM S No . FA A -2009-097 6 Administrator' s Oppositio n t o SmithCable' s Pag e 6 Applicatio nfo r

Attorney' s Fee s an dExpense s